A REPORT ON
ROLE OF FOREIGN INSTITUTIONAL INVESTORS (FII) IN INDIAN STOCK MARKET
By
KARTHIK BR
A major development in our country post 1991 has been liberalization of the financial
sector, especially that of capital markets. Our country today has one of the most prominent
and followed stock exchanges in the world. Further, India has also been consistently gaining
prominence in various international forums, though we still have a long way to go.
Before I actually begin with the crux of this presentation, let me give you a brief background.
Developing countries like India are generally capital scarce. This is because levels of income
are lower in comparison to other developed countries, which in turn means savings and
investments are also lower. So how do developing nations get out of such a situation?
Simple! They borrow money, like we all do when we need to buy a house or a car. Countries
can thus invest this borrowed money in various social and physical infrastructures, earn a
return on them which helps them pay off their debt, and simultaneously propel the country to
a higher growth trajectory.
But are we obsessed with FIIs? Do we give them more attention than they deserve? But we
can debate on some basic issues regarding FII flows.
Foreign institutional investors (FIIs) poured inflows heavily to bet on the India growth story.
As per data released by the Securities and Exchange board of India (SEBI), FIIs invested US$
2055.74 million in equities between July 1 and July 21, 2010, and US$ 1566.98 million in
debt between the same period.
During January to June 2010, FIIs invested US$ 6878.50 million in equity and US$ 6083.90
million in debt.
Data sourced from SEBI shows that the number of registered FIIs stood at 1713 and number
of registered sub-accounts rose to 5,426 as of June 30, 2010.
REGULATION OF FOREIGN INSTITUTIONAL INVESTORS (FIIs)
The Union Government allowed the entry of FIIs in order to encourage the capital market and
attract foreign funds to India. Today, FIIs are permitted to invest in all securities traded on the
primary and secondary markets, including equity shares and other securities listed or to be
listed on the stock exchanges. The original guidelines were issued in September 1992.
Subsequently, the Securities and Exchange Board of India (SEBI) notified the SEBI (Foreign
Institutional Investors) Regulations, in November 1995.
DIFFERENT INVESTMENT AVENEUS
Over the years, different types of FIIs have been allowed to operate in Indian stock markets.
FIIs can invest in all securities traded on the primary and secondary markets. Such
investments include equity/debentures/warrants/other securities/instruments of companies
unlisted, listed or to be listed on a stock exchange in India including the Over-the-Counter
Exchange of India, derivatives traded on a recognized stock exchange and schemes floated by
domestic mutual funds. Apart from the above mentioned securities, now they include such as
pension funds, mutual funds, investment trusts, asset management companies, nominee
companies, incorporated/institutional portfolio managers, university funds, endowments,
foundations and charitable trusts/societies with a track record. Proprietary funds have also
been permitted to make investments through the FII route subject to certain conditions.
Bird View of FII about Indian Stock
"FIIs are bullish about the Indian market and they are in buying spree, especially in sectors
like banking and metal.
In February, foreign funds invested Rs 1,216 crore in the Indian equities, reversing their pull-
out trend of the first month of the year.
In January, FIIs had withdrawn a net Rs 500.3 crore from the domestic stock markets, turning
net seller for the first time since February 2008. Till mid-February this year, FIIs were
throughout selling Indian stocks.
After a lull in 2008, Indian equities once again became the favourite bet for foreign funds last
year as they pumped- in nearly Rs 88,000 crore in domestic shares in 2009.
Last year's investment of Rs 87,987 crore by FIIs is the highest ever inflow in the country in
rupee terms in a single year.
Buoyed by FII inflow during last year, the stock market barometer Sensex (of the BSE)
gained over 70 per cent, one of the best performers among the leading global bourses.
In debt segment, FIIs have poured in Rs 13,351.4 crore or $2.9 billion so far this year, as per
the data with Securities and Exchange Board of India.
20 Major Stock Exchanges : Year ended 31 December 2009
Source: World Federation of Exchanges - Statistics/Monthly
Market Trade Value
Economy Stock Exchange Capitalization (USD Billions)
(USD Billions)
United States New York Stock Exchange 11838 17521
Japan Tokyo Stock Exchange 3306 3704
United States NASDAQ 3239 13608
Europe Euronext 2869 1935
United
London Stock Exchange 2796 1772
Kingdom
China Shanghai Stock Exchange 2705 5056
Hong Kong Hong Kong Stock Exchange 2305 1416
Canada Toronto Stock Exchange 1677 1245
Spain BME Spanish Exchanges 1435 1259
Brazil BM&F Bovespa 1337 645
India Bombay Stock Exchange 1307 264
Germany Deutsche Börse 1292 1517
Australia Australian Securities Exchange 1225 799
National Stock Exchange of
India 1225 792
India
Switzerland SIX Swiss Exchange 1065 740
China Shenzhen Stock Exchange 868 2772
South Korea Korea Exchange 835 1570
NASDAQ OMX Nordic
Nordic Countries 817 697
Exchange
South Africa JSE Limited 799 271
Taiwan Taiwan Stock Exchange 658 905
Italy Borsa Italiana 656 948
If we analyse the above table one could say Indian stock exchange both NSE & BSE has
a very good opportunity to invest why because the developed countries has almost
reached saturation point & other developing countries does not have much
opportunities as India has...
Reasons To invest in Indian stock Market
India, among the European investors, is believed to be a good investment despite political
uncertainty, bureaucratic hassles, shortages of power and infrastructural deficiencies. India
presents a vast potential for overseas investment and is actively encouraging the entrance of
foreign players into the market. No company, of any size, aspiring to be a global player can,
for long ignore this country which is expected to become one of the top three emerging
economies.
Success in India
Success in India will depend on the correct estimation of the country's potential,
underestimation of its complexity or overestimation of its possibilities can lead to failure.
While calculating, due consideration should be given to the factor of the inherent difficulties
and uncertainties of functioning in the Indian system. Entering India's marketplace requires a
well-designed plan backed by serious thought and careful research. For those who take the
time and look to India as an opportunity for long-term growth, not short-term profit- the trip
will be well worth the effort.
Market potential
India is the fifth largest economy in the world (ranking above France, Italy, the United
Kingdom, and Russia) and has the third largest GDP in the entire continent of Asia. It is also
the second largest among emerging nations. (These indicators are based on purchasing power
parity.) India is also one of the few markets in the world which offers high prospects for
growth and earning potential in practically all areas of [Link], despite the practically
unlimited possibilities in India for overseas businesses, the world's most populous democracy
has, until fairly recently, failed to get the kind of enthusiastic attention generated by other
emerging economies such as China.
Indian stock market is expected to grow with minimum 12-15% average ROI per annum for
next 5 years.
Liberalized Trade Policy:
Whilst across to specific markets – judged by their size and growth is important, domestic
market factors are predictability much less relevant in export oriented foreign firms. A range
of surveys suggests a widespread perception that ‘open’ economies encourage more foreign
investment. One indicator of openness is the relative size of the export sector.
Labour Costs and Productivity:
Empirical research has also found relative labour costs to be statistically significant,
particularly for foreign investment in labour intensive industries and for export oriented
subsidiaries. In India labour market rigidities and relatively high wages in the formal sector
have been reported as deterring any significant inflows into the export sector in particular.
The decision to invest in china has been heavily influenced by the prevailing low wage rate.
Political Scenario:
The ranking of the political risk among FII determinants remains somewhat unclear. Where
the host country possesses abundant natural resources, no further incentive may be required,
as is seen in politically unstable countries such as Nigeria and Angola, where high returns in
the extractive industries seem to have compensated for political instability. In general, so
long as the foreign company is confident of being able to operate profitably without undue
risk to its capital and personnel, it will continue to invest. Large mining companies, for
example, overcome some of the political risks by investing in their own infrastructure
maintenance and their own security forces. Moreover, these companies are limited neither by
small local markets nor by exchange rate risks since they tend to sell almost exclusively on
the international, market at hard currency prices.
Infrastructure:
Infrastructure covers many dimensions, ranging from roads, ports, railways and
telecommunication systems to institutional development (e.g. accounting, legal services,
etc.). Studies in China reveal the extent of transport facilities and the proximity to major ports
as having a positive significant effect on the location of FII within the country. Poor
infrastructure can be seen, as both, an obstacle and an opportunity for foreign investment. For
the majority of the low income countries, it is often cited as one of the major constraints. But
foreign investors also point potential for attracting significant FII if host country government
permits more substantial foreign participation in the infrastructure sector.
Incentives and Operating Conditions:
Most of the empirical evidence supports the notion that specific incentives such as lower
taxes have no major impact on FII particularly when they are seen as compensation for
continuing comparative disadvantages. On the other hand, removing restrictions and
providing good business operating conditions are generally believed to have a positive effect.
Further incentives such as granting of equal treatment to foreign investors in relation to local
counterparts and the opening up of markets (e.g. air transport, retailing, banking,) have been
reported as important factors in encouraging FII flows in India.
Disinvestment Policy:
Though privatization has attracted some foreign investment flows in recent years, progress is
still slow in majority of low income countries, partly because the divestment of the state
assets is a highly political issue.
The main reason why Foreign Institutional Investors put their money in India is because India
has the ability to produce goods and provide services at a lower cost. The scarcity of
employment opportunities in India has created a situation where industries can easily hire a
well qualified or even an over qualified professional at a lower cost, usually at a fraction of
international wage standards.
Capital Gain Tax (CGT):
In India, equities are considered as long term capital if the holding period is one year or more.
Long term capital gains from equities are not taxed(ZERO TAX) if shares are sold through
recognised stock exchange. However short term capital gains from equities held for less than
one year, is taxed at 15% (Increased from 10% to 15% after Budget 2008-09) plus surcharge
and education cess. This is applicable only for transactions that attract Securities Transaction
Tax (STT).
Low interest rates in foreign banks:
The interest rates in the banks in the developed courntries like USA and European courntries
are very low, now about less than one percent per year. If they invest in their banks, they get
very meagre returns.
The returns from Indian stock market are attractive. Hence many foreign
institutional investors are investing a small part of their portfolio in the Indian stock market.
FII and Stock Exchanges
FIIs and Stock Exchanges have an inherent relationship among them. Let us try
understanding this with the below mentioned chart which shows trends in the FII investments
that have occurred from the period of April, 04 to December, 05. The red bars indicate the FII
investments and the blue curvy line indicates the average contribution of the FIIs to BSE
Sensex points. The figures at the left indicate the FII investments made where as the figures
to the right indicate In April 04 the investments were made thereby moving the FIIs
investments graph to 4000 and in the next month they were withdrawn resulting into the
negative effect on the Indian stock market. Then since June 04 the investments were made
and they have moved in the positive direction there by leading to the positive effect on the
stock market. In April and May 2005 the investments were withdrawn and after that the
investments were again withdrawn in October 2005.
Sensex V/S FII correlation (Table 2)
Months Sensex Gain/ Loss (%) FII Net Purchases/Sales (Rs Cr)
May -14.9 -8247.2
June 5.34 1418.2
July 0.45 1447.9
August 8.07 3537.7
Net FII Sales between May-Aug (2006) -1843.4
The stock markets in India had to put up the burden in terms of being the second largest loser
of foreign money in Asia accounting for 22% of the total net sales, April/May 2006. One of
the reasons for the attack of Black Monday is claimed to be FIIs. Statistical records indicated
that both FIIs and domestic institutional investors together influenced market sentiment.
During the fortnight from May 16 to May 31, 2006, the withdrawals by FIIs were to the
extent of US$2.061 billion. This explains the fact that sales of FIIs had a major impact on the
market and this impact led to the crash.
Black Monday is because of FII’s ?
Yes most of the times because a very good example which could be given as market
crash of 564 points of sensex on 17, may 2004 and it is because of high sales of FII,s.
GDP Data for the last 50 years :
10 largest exchanges by number of new companies listed through an IPO during the
period January-June 2010
Exchange Number of new Number of new %
companies companies Change
(IPOs) (IPOs)
1st half of 2010 1st half of 2009
1. Shenzhen Stock Exchange 164 - -
2. TSX Group 137 58 136%
3. Bombay Stock Exchange 57 26 119%
4. Warsaw Stock Exchange 40 13 208%
5. NYSE Euronext (US) 38 12 217%
6. London Stock Exchange 38 3 1 166%
7. Korea Exchange 36 7 414%
8. NASDAQ OMX 34 3 1 033%
9. Australian Securities Exchange 32 6 433%
10. National Stock Exchange of 30 1 2 900%
India
HOW TO SUBSTANTIATE THAT THE GROWTH IS SUSTAINABLE: -
1. As Financial institutional investors plays a vital role in the capital market funds and it is a
fact that no FII'S is long term oriented and really have a concurrent opinion of investing in
the core sectors of the economy and their ultimate motto is to gain more profits in short term,
this makes the FII'S to with draw their funds all of sudden when there is a chance of
comparatively more profits in other capital markets. Quite a number of occasions it has
created a situation of panic in Indian capital markets, but with the timely involvement of
Government, RBI and SEBI (which are the directive bodies to capital markets in India), the
capital markets have come up from the disastrous situations.
Foreign Institutional Investors' (FIIs) net investment in the Indian stock markets in calendar
year 2005 crossed US$ 10 billion in the 2005 calendar, the highest ever by the foreign funds
in a single year after FIIs were allowed to make portfolio investments in the country's stock
markets in the early 90s.
India's popularity among investors can be gauged from the fact that the number of FIIs
registered with SEBI has increased from none in 1992-93 to 528 in 2000-01 to 803 in 2005-
06. In 2005 alone, 145 new FIIs registered themselves, taking the total registered FIIs to 803
(as on October 31, 2005) from 685 in 2004-05.
A number of these investors are Japanese and European funds aiming to cash in on the rising
equity markets in India. In addition, there was increased registration by non-traditional
countries like Denmark, Italy, Belgium, Canada and Sweden.
India has the third largest investor base in the world. India has one of the world's lowest
transaction costs based on screen based transactions, paperless trading and a T+2 settlements
cycle.
2. The Price Earning Ratios of the companies were always in a positive direction and rapid
increase has been observed over a period of time.
3. The levels of inflation were staying at a comfortable level
4. The incorporation of SEBI (1992) various practices have been devised and the companies
are being asked to comply with strict, stringent measures of corporate governance and the
levels of disclosure are raised to a huge extent.
JOURNEY OF SENSEX TOWARDS THE PINNACLE
Month, date Year Points
July 25 1990 1000
Jan 15 1992 2000
Feb 29 1992 3000
March 30 1992 4000
Oct 8 1999 5000
Feb 11 2000 6000
June 20 2005 7000
Sept 8 2005 8000
Nov 28 2005 9000
Feb 6 2006 10000
March 21 2006 11000
April 20 2006 12000
October 30 2006 13000
December 5 2006 14000
July 6 2007 15000
September 19 2007 16000
September 26 2007 17000
October 9 2007 18000
October 15 2007 19000
October 29 2007 20000
January 8 2008 21000
December 23 2008 9686
December 23 2009 17231
July 9 2010 18645
October 22 2010 20165
From the above table we can observe that the time being taken to rise from thousand to
thousand is getting reduced at a great pace. Even though huge sea-saws are being seen, the
index is gaining in a remarkable manner, and on and over the time it resembles the Sustained
position.
The growth of institutional investors in the market is having its own advantages as well as its
own share of problems on the brighter side almost always purchase stocks on the basis of
fundamentals. And this means that it is essential to have information to evaluate, so research
becomes important and this leads to increasing demands on companies to become more
transparent and more disclosures. This will lead to reduction in information asymmetries that
plagued the Indian markets for quite a while. Also, the increasing presence of this class of
investors leads to reform of securities trading and transaction systems, nurturing of securities
brokers, and liquid markets. If we see the numbers of FII flows, It is increasing every year:
YEAR Net investment by FII (Rs.
crores)
1992-93 4.27
1993-94 5444.60 On the flip side the increase of foreign
1994-95 4776.60 investors in particular will bring a very
1995-96 6720.90 welcome inflow of foreign capital, but
1996-97 7386.20 there are always some dangers if certain
1997-98 5908.45 limits are exceeded. Firstly, the foreign
1998-99 729.11 capital is free and unpredictable and is
1999-00 9765.13 always on the look out of profits. Flls
2000-01 9682.52 frequently move investments, and those
2001-02 8272.90 swings can be expected to bringsevere
price fluctuations resulting in increasing
2002-03 2668.90
volatility. Here we analyze the
2003-04 44000.03
comparative trend of sensex and FII, how
2004-05 41416.45
it affected the market, Here the grey
2005-06 48801.00
curve shows sensex indeces and black
2006-07 36539.7 curve shows the FII cash flow, Here we
2007-08 71486.5 can see how FII cash inflows increases
2008-09 41555.00 the market indeces and cash outflows
2009-10 80500.40 decreases the indian stock market
2010-11 97900.00 indeces:
This is the way FII is supplimenting volatility in Indian market. This is what is happening in
current scenerio. Also, increased investment from overseasmay shift control of domestic
firms to foreign hands. Which showed us how the Indian market is interdependent on global
markets like U.S., Europe and other asian markets. This was the same as happen in current
scenerio, U.S. and other market meltdown slotted in direct impact on Indian market. The FII
are taking out the money and the impact is shown on current Indian markets.
FII Investment avenues in India:
EQUITY (Co.) % Market DEBT ALLOCATION
Capitalisation
State Bank of India 13.99 Govt Securities $5 bn -$10bn
HDFC Bank 29.72 Corp bonds $ 15bn – $20bn
ACC 15.00 Infrastructure $ 5bn
Ambuja cements 27.06
L&T 16.65
Tata power 19.23
ICICI Bank 39.27
Influence of FIIs on Indian Stock Market
The current investments of FIIs is Rs. 2,55,464.40 Crores. This is almost 9% of the total
Market capitalisation.
The major impacts are: -
_ They increased depth and breadth of the market.
_ They played major role in expanding securities business.
_ Their policy on focusing on fundamentals of the shares had caused
efficient pricing of shares.
These impacts made the Indian stock market more attractive to FIIs and also domestic
investors, which involves the other major player MF (Mutual Funds). The impact of FIIs
is so high that whenever FIIs tend to withdraw the money from market, the domestic
investors become fearful and they also withdraw from market.
Just to show the impact, we analyze below the 10 biggest falls of stock market: -
Day (Points loss in Gross Purchase (Rs. Gross Sales (Rs. Net Investments (Rs.
sensex) crores) crores) Crores)
21/01/2008 (1408) 3602.00 1060.30 2001.80
22/01/2008 (875) 2813.30 1618.20 1195.10
18/05/2006 (856) 761.80 527.40 234,40
17/12/2007 (826) 670.00 869.00 -199.00
18/10/2007 (717) 1107.00 1372.50 -265.50
18/01/2008 (687) 1077.20 1348.40 -271.20
21/11/2007 (678) 640.70 791.80 -151.10
16/08/2007 (643) 989.50 750.30 239.20
02/08/2007 (617) 534.50 542.00 -7.50
01/08/2007 (615) 809.40 956.90 -147.50
From above table, we can see that the major falls are accompanied by the withdrawal of
investments by FIIs. Take the case on January 18, 2008, the Sensex lost almost 687
points. Here, the net sales by FIIs was Rs. 1348.40 Crores. This is a major contributor to
the fall on that day. But contrary to that day, take the case on January 21, 2008, the
Sensex lost 1408 points and the gross sales was Rs. 1060.30 Crores and the purchases
were Rs. 3062.00 Crores. So this can be concluded that after the fall of market, FIIs had
invested again into the market. From this, we can see the effect of FIIs.
Year Gross Purchase Gross Sale Net Investment % Change
2003 94410.5 63951.8 30458.7 0
2004 185671.5 146706.4 38965.1 27.92765
2005 286020.5 238839.4 47181.2 54.90221
2006 475622.5 439082.8 36539.7 19.96474
2007 814877 743390.7 71486.5 134.6998
2008 (10/08/08) 560480.9 589650 -29169 -195.766
From the graph above,we analyze the net investments' graph from
2003 to 2008. From this, we can see that there is a constant increase
in net investments till 2005 and there was small decrease in investments in the year 2006.
But there was a steep increase in the year 2007-08. This was the best period in Indian
stock market where stock prices were at peak and the market was in good mood.
When we take the investments in 2008, the net investments is negative. And we know the
market is volatile in this year. So we find that there is direct relation between net
investments and movement of stock market.
FIIs Gross Purchases & Sales from 2003-08
Now this graph represents the relation between gross purchases and
gross sales. We can see from the graph that gross purchases are
increasing from 2003 to 2007 and gross sales are lower than gross
purchases. So we conclude that this caused the market to reach the magical figure of
21,000 in Sensex. But when we look at the year of 2008, the involvement of FIIs is
reduced, and we can also find in this year the gross sales is higher than gross purchases.
This analysis also indicates the impact of FIIs in markets.
Advantages
A positive contribution of the FIIs has been their role in improving the stock market
infrastructure. The SEBI has no doubt contributed much in improving the stock exchange
infrastructure. However, it is doubtful whether one would have witnessed such rapid
developments in computerising the operations of the stock markets and introduction of
paperless trading in the demat form if the FIIs had not built up pressure on the authorities to
move in this direction.
The FIIs are playing an important role in bringing in funds needed by the equity market.
Additionally, they are contributing to the foreign exchange inflow as the funds from
multilateral finance institutions and FDI are insufficient. However, the fact remains that FII
investments are volatile and market driven, but this risk has to be taken if the country has to
ensure steady inflow of foreign funds.
Enhanced flows of equity capital
FIIs have a greater appetite for equity than debt in their asset structure. The opening
up the economy to FIIs has been in line with the accepted preference for non-debt
creating foreign inflows over foreign debt. Enhanced flow of equity capital helps
improve capital structures and contributes towards building the investment gap.
Managing uncertainty and controlling risks.
FII inflows help in financial innovation and development of hedging instruments.
Also, it not only enhances competition in financial markets, but also improves the
alignment of asset prices to fundamentals.
Improving capital markets.
FIIs as professional bodies of asset managers and financial analysts enhance
competition and efficiency of financial markets.
Equity market development aids economic development.
By increasing the availability of riskier long term capital for projects, and increasing
firms’ incentives to provide more information about their operations, FIIs can help in
the process of economic development.
Improved corporate governance.
FIIs constitute professional bodies of asset managers and financial analysts, who, by
contributing to better understanding of firms’ operations, improve corporate
governance. Bad corporate governance makes equity finance a costly option. Also,
institutionalization increases dividend payouts, and enhances productivity growth.
Disadvantages
Problems of Inflation: Huge amounts of FII fund inflow into the country creates a lot
of demand for rupee, and the RBI pumps the amount of Rupee in the market as a
result of demand created.
Problems for small investor: The FIIs profit from investing in emerging financial
stock markets. If the cap on FII is high then they can bring in huge amounts of funds
in the country’s stock markets and thus have great influence on the way the stock
markets behaves, going up or down. The FII buying pushes the stocks up and their
selling shows the stock market the downward path. This creates problems for the
small retail investor, whose fortunes get driven by the actions of the large FIIs.
Adverse impact on Exports: FII flows leading to appreciation of the currency may
lead to the exports industry becoming uncompetitive due to the appreciation of the
rupee.
Hot Money: “Hot money” refers to funds that are controlled by investors who actively
seek short-term returns. These investors scan the market for short-term, high interest
rate investment opportunities. “Hot money” can have economic and financial
repercussions on countries and banks. When money is injected into a country, the
exchange rate for the country gaining the money strengthens, while the exchange rate
for the country losing the money weakens. If money is withdrawn on short notice, the
banking institution will experience a shortage of funds.
Conclusion
India, which is the second fastest growing economy after China, has lately been a major
recipient of foreign institutional investor (FII) funds driven by the strong fundamentals and
growth opportunities. Both consumption and investment-led industries linked to domestic
demand, such as auto, banking, capital goods, infrastructure and retail, are likely to continue
attracting FII funds. FIIs have made net investments of US$ 10 billion in the first six months
(April to September) of 2009-10. Major portion of these investments have come through the
primary market, more than through buying via secondary markets. At the World Economic
Forum at Davos, Switzerland, the Indian authorities strongly advocated the need to regulate
capital flows and called for rule-based system of international financial flows. India’s then
Finance Minister, Yashwant Sinha had long warned that we can’t allow economies to be
destabilized by someone pressing a finger on a computer key and moving billions in and out
of markets. If we don’t replace the present chaos with order, then globalization will remain a
13-letter dirty word.
These words could not have had been more prophetic after the Global Meltdown which began
in the United States in fall 2007. What is most ironical to note is that the economies which
were least regulated and most market oriented were the ones to suffer the worst. India on the
other hand despite recession’s dark clouds lingering around it, has been able to manage a
decent growth rate and the best part is that inspite of some early sell outs, FIIs have reposed
their faith in the fundamentals of Indian economy by reinvesting in India. Thus India even
though has certain issues which are to be sorted out but still remains a potent FII attractor and
retainer which is generating wealth for everyone concerned.